Britain's Secretary of State for Education and Sciences assesses the future for higher education in Britain. The British system of higher education is outlined as background, and common developments in the field in Britain and the United States are noted: (1) the end of the rapid expansion in funds; (2) the atmosphere of doubt as to what the public is getting in higher education; (3) issues of academic standards as traditionally conceived and the need for educational alternatives; and (4) demographic trends that indicate a decrease in audience for higher education. Substantial statistical data and analyses are provided in the cases of the second and fourth developments. It is concluded that the central nature of the teaching function is essential in any attempt to take higher education into new areas. The only way to bring continuing education to disadvantaged and other new groups will be to improve the effectiveness of teaching. It is proposed that this requires: training academics to present their subjects well, an area largely neglected, and recognizing the significance of the teaching function in reaching out to groups to whom manner of presentation is an important consideration. It is felt that in valuing the teaching function more highly than is often done, higher education can be brought to new segments of the population. (MSE)